38 Studios Skips Payroll, Can't Pay State

Update: The check 38 Studios hand delivered to the state bounced this afternoon. According to WPRI, the EDC will still accept the overdue $1.125 million payment if 38 Studios can find a way to come up with the money.

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The situation at 38 Studios is getting worse. The studio is reportedly paying the overdue $1.25 million it owes the R.I. Economic Development Corporation, but did not make payroll this week.

Judy Chong, a spokesperson for the EDC, confirmed the news to WPRI today. 38 Studios employed 379 full-time employees as of March 15, including 288 in Rhode Island, the report says.